Federal Reporting for Interest Income & Interest Expense
Author: Jane Ryder
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course will discuss various categories of interest income including OID, U. S. savings bond interest, EE and I bond interest exclusions, State muni income, seller financed interest, interest from installment sales, nominee adjustments to interest income, imputed interest and more. Deductions for interest expense may also involve challenges for mortgage interest for homes, rental property, or other real estate, investment interest expense, margin interest, capitalized interest costs, interest tracing rules, 10T elections, required interest on shareholder or partner loans, reverse mortgages, student loan interest and more. We’ll review the rules governing qualified acquisition debt, negative amortization, claiming interest not reported in taxpayer’s SSN or EIN, deductibility of financing for buying out a former spouse’s ownership in property, reporting business interest for business loans used to buy out partners or shareholders or return capital to them, home solar loans, and more.
Publication Date: June 2025
Topics Covered
- Interest income
- Interest expense
- U. S. savings bonds
- Mortgage interest limitations
- Business interest expense
- Rental interest
- Shareholder or partner loans
- Investment interest
- Installment sales
- 10T elections
- Interest tracing
Learning Objectives
- Explain how to correctly report various types of interest income
- Explain mortgage interest limitations for individuals and accurate interest allocations for home offices
- Identify how to maximize tax savings available related to business and investment income expenses
- Explain how to advise clients on compliance matters related to partner and shareholder loans to and from business entities
- Recognize unique tax matters related to interest earned or paid
- Identify the type of loan that requires imputed interest under IRC §7872
- Identify the form used to calculate and report investment interest expense limitations
- Identify the primary audit risk related to mortgage interest deductions
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
